Understanding types of Business Objectives

Objectives of Business

Classified objectives of business are: Economic, Social, Human, National and Global

Economic Objectives

∙ It refer to objective of earning profit and also other objectives that are necessary pursue to achieve profit.

∙ There are sub categories of profit earning objectives as follows

(i) Creation of customer: To earn profit it needs to attract more customers. It can be achieved with help of marketing activities.

(ii) Continuous innovations: Innovation means changes, which bring improvement in products, process of production and distribution of goods. Reduction in cost and increase in sales gives more profit to business.

(iii) Possible use of resource: Business activities require various resources like men, materials, money and machines. By employing efficient workers, making full use of machines and minimizing wastage of raw materials business objective can be achieved.

Social objectives

∙ Objectives include, which are desired to be achieved for benefit of society.

∙ It includes production and supply of quality goods and services, adoption of fair trade practices and contribution to the general welfare of society and provision of welfare amenities.

(i) Production and supply of quality goods and services: produce better quality goods and supply them at right time and at a right price.

(ii) Adoption of fair trade practices: objective of business should be to adopt fair trade practices for welfare of consumers as well as society.

(iii) Contribution to general welfare of society: Business units should work for general welfare and upliftment of society. It can be possible through opening of vocational training centers that train people to earn their livelihood, establishing hospitals for medical facilities, etc.

Human Objectives

∙ Aimed at well-being as well as fulfillment of expectations of employees as of people who are disabled, handicapped and deprived of proper education and training.

∙ It includes economic well-being of the employees, social and psychological satisfaction of employees and development of human resources.

National Objectives

∙ Every business must have objective of fulfilling national goals and aspirations.

Create opportunities for gainful employment of people.

∙ Provide equal opportunities to all persons.

∙ Produce and supply goods in accordance with priorities laid down in plans and policies of Government.

∙ Pay taxes and dues honestly and regularly.

Global Objectives

∙ To face competition in global market every business has certain objectives in mind, which may be called global objectives.

∙ Growth of business activities across national borders makes available quality goods at reasonable prices all over world.

∙ Business should help to reduce disparities among rich and poor nations of world by expanding its operation.

∙ Business should produce goods and services which are globally competitive and have huge demand in foreign markets.

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